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Regression and Matching Estimates of the Effects of the Land Certification Program on Rural Household Income in China

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  • Yuepeng Zhou
  • Satish Chand
Abstract
Despite the steady growth of China’s economic since the economic reforms in 1978, the rural-urban income inequality has also risen rapidly. Here we explore the role that rural land reform plays in raising income. We investigate growth in rural household income which can be attributed to a Rural Land Registration and Certification (RLRC) program that was put into effect in Chengdu city, Sichuan province in 2009. We draw on household socio-economic data collected in 2011 through a purpose designed survey for the analysis. Using regression and matching methods, we find that the RLRC program has contributed to certified farmers’ participation in land market, especially rental transfer of land to more productive producers. Findings for the program’s impact on increasing farmers’ income are mixed. Although transfer income from land rentals and government subsidies has greatly increased, farming income and wage income have not significantly improved, suggesting that land certification may have had a substitution effect and an income effect on household’s choice between farm, wage employment and leisure.

Suggested Citation

  • Yuepeng Zhou & Satish Chand, 2013. "Regression and Matching Estimates of the Effects of the Land Certification Program on Rural Household Income in China," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 2, October.
    • Handle: RePEc:bjz:ajisjr:352
    DOI: 10.5901/ajis.2013.v2n8p350
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    References listed on IDEAS

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    1. Satish Chand & Charles Yala, 2009. "Land Tenure and Productivity: Farm-Level Evidence from Papua New Guinea," Land Economics, University of Wisconsin Press, vol. 85(3), pages 442-453.
    2. Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    3. Xiao-Yuan Dong, 2000. "Public investment, social services and productivity of Chinese household farms," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 100-122.
    4. Deininger, Klaus & Chamorro, Juan Sebastian, 2002. "Investment and income effects of land regularization : the case of Nicaragua," Policy Research Working Paper Series 2752, The World Bank.
    5. F. Place & K. Otsuka, 2002. "Land Tenure Systems and Their Impacts on Agricultural Investments and Productivity in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 105-128.
    6. Stein Holden & Klaus Deininger & Hosaena Ghebru, 2011. "Tenure Insecurity, Gender, Low-cost Land Certification and Land Rental Market Participation in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 31-47.
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    Cited by:

    1. Meng, Fei & Chand , Satish & Huybers, Twan, 2024. "Land Tenure Arrangements and Rural-Urban Migration in China: Evidence From Shandong and Hebei Province," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 49(3), pages 107-131, September.

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